Skip to Content

ICT Market Maker Primer Course - 03 - Essentials To ICT Market Structure.srt

Last modified by Drunk Monkey on 2021-06-10 06:22
1 00:00:12,509 --> 00:00:23,579 ICT: Okay, folks, essentials to market structure. And this module is going to be really based upon the premise of looking towards helping you educate yourself in
2 00:00:23,579 --> 00:00:38,279 determining trade direction. This is probably one of the most reoccurring email, inquiries and posts that you see in the forums on baby pips directed to me. It's
3 00:00:38,309 --> 00:00:49,049 my goal, obviously, to share a little further amplification on some of the concepts that I use in determining trade direction. And hopefully, this will be
4 00:00:49,049 --> 00:01:01,379 insightful for you. But what do we do when we sit down from the charts? What's the primary function as a trader? Well, you as a forex trader, you want to be
5 00:01:01,379 --> 00:01:10,199 finding your way through price. And as a new trader, I can understand how daunting this task may be, because there's so many different timeframes, you
6 00:01:10,199 --> 00:01:19,409 have your monthly, weekly daily for our one hour, 15 minutes or five minutes or one minute chart, you have tick charts, all these different timeframes, it's
7 00:01:19,409 --> 00:01:30,449 very bewildering sometimes, if y'all understand really what it is you need to be doing, and breaking it down breaking down price in a uniform structured way. So
8 00:01:30,449 --> 00:01:39,959 the first thing I'm going to really counsel you on is your primary objective is to know your timeframe that you're trading. Okay. And it gets back to what type
9 00:01:39,959 --> 00:01:45,749 of trader Are you going to be? Are you going to be a position trader? Are you going to be a swing trader, a short term trader Are you going to be a day trader
10 00:01:45,749 --> 00:01:57,869 or a scalper, I can't teach you how to find the correct style trader that's within you. That's all part of your personal makeup. So this module much in the
11 00:01:57,869 --> 00:02:05,999 same capacity my other modules have been, they're going to speak in general terms, okay, but it's going to give you enough insight for you to be able to
12 00:02:06,029 --> 00:02:13,919 determine what it is that you need to be focusing on for you to find the most optimal way of trading for you yourself, okay, because each of us are going to
13 00:02:13,919 --> 00:02:25,259 be different. As you grow and you mature as a trader, you may be multi timeframe. Based in terms of trading and onwards, I consider myself a dynamic
14 00:02:25,259 --> 00:02:38,609 traders simply because I can trade any one of these timeframes. Now I excel in the short term to swing trading area, but I can day trade, and I can scalp but I
15 00:02:38,609 --> 00:02:48,149 prefer not to it would be my advice to you is if you can try to work within the short term to day trading in the beginning, because it's going to give you the
16 00:02:48,149 --> 00:02:59,309 most immediate feedback. And it's going to give you the confidence you need to be sticking to a plan because obviously, as a position trader, you don't have a
17 00:02:59,309 --> 00:03:08,129 whole lot of opportunities materializing that frequently. Swing Trading, again, thing capacity, it's going to be a little while so little while between each
18 00:03:08,129 --> 00:03:17,189 setup. So it's gonna be harder for a new trader looking to find themselves to wait between the signals and stick within that specific framework for trading.
19 00:03:17,549 --> 00:03:26,369 So short term trading and day trading and scalping, avoid that for now. But we will talk about how you can utilize these concepts for scalping button. Again,
20 00:03:26,369 --> 00:03:35,039 short term and day trades. If you're brand new to price action, those are very rewarding because they give you the immediate feedback, new traders sometimes
21 00:03:35,039 --> 00:03:44,939 need. So let's talk about what the professional perspective is, when we're applying market structure. Well, obviously, for position trades, this is going
22 00:03:44,939 --> 00:03:54,509 to be anywhere between three to as much as six to six months to a year in terms of duration. Now, I don't have a whole lot of types of trades like this, but
23 00:03:55,529 --> 00:04:05,789 every three to four months in the marketplace, whether it be in stocks or commodities or Forex, there is a specific swing that manifests itself and we
24 00:04:05,789 --> 00:04:14,339 talked about that in other videos and other teaching. I'm not going to cover that here. But if you are that type of trader, obviously the three timeframes
25 00:04:14,339 --> 00:04:17,639 that you would utilize to break down market structure for
26 00:04:17,730 --> 00:04:27,870 your particular market would obviously be monthly, the weekly and the daily, okay, monthly being your highest timeframe, your weekly being your midline or
27 00:04:27,870 --> 00:04:37,770 mid level timeframe. And then you have your daily that would be your short term.  Now as a swing trader, okay, your premise for breaking down market structure
28 00:04:37,770 --> 00:04:48,330 will be comprised over looking at the daily, the four hour and the one hour chart okay. Your setup will be based upon what you see on the higher timeframe
29 00:04:48,360 --> 00:04:58,260 the daily much in the sink capacity for position trade. The monthly will be your position trade premise hours if we are considerably overbought and there should
30 00:04:58,260 --> 00:05:09,060 be some kind of a topping form on a monthly chart, you would look to see market structure break down on a weekly and daily to facilitate a short position. While
31 00:05:09,060 --> 00:05:20,250 on a swing trade model, you utilize that same measure of market structure by utilizing the highest timeframe for swing trades in this approach would be the
32 00:05:20,250 --> 00:05:32,970 daily chart, and then breaking that down into four hour chart, and then lesser price action study in the one hour chart. So you'll be timing on the one hour,
33 00:05:33,300 --> 00:05:42,540 you will be managing on the four hour. And the premise or the trade idea would be built upon the highest timeframe, which would be the daily chart, okay, and
34 00:05:42,540 --> 00:05:51,840 the swing traders model here. If you're a short term trader, obviously, the duration of time for these types of trades could be anywhere between one day to
35 00:05:51,840 --> 00:06:01,320 as much as a week or so. Swing Trading is about a week or more in terms of trade duration, I forgot to mention that. But for short term trade, you'll be using
36 00:06:01,320 --> 00:06:13,110 the four hour chart for your trade premise or your directional bias. And then on the one hour chart, that would be your trade management or mid level timeframe.
37 00:06:13,830 --> 00:06:23,370 And then your 15 minute chart would be utilized for your timing for entry and possibly looking for early reversal signs that you trade maybe petering out and
38 00:06:23,370 --> 00:06:33,240 it's time to take profits. For day trades. Obviously, you can see it's the one hour chart, it'd be highest timeframe, you would be managing your trade on the
39 00:06:33,240 --> 00:06:44,820 15 minute timeframe. And your five minute chart would be utilized to enter. Now, it's not to say that you can't use a five minute chart on the short term swing
40 00:06:44,880 --> 00:06:56,580 and position trades for entry. Okay, I'm giving you the framework for at least having three timeframes across the spectrum of your trading. And how you break
41 00:06:56,580 --> 00:07:08,790 down market structure over these three specific timeframes for each individual trading model will give you again, the building blocks the flesh out what you
42 00:07:08,790 --> 00:07:23,790 need to see in terms of directional bias. Okay, so let's take a look. closer look at price, action and market structure. Now the keys to multiple timeframe
43 00:07:23,790 --> 00:07:35,130 market structure, okay are rather simple. Where's your focus, your focus should be on the highest of the three timeframes. trades will be managed by the highest
44 00:07:35,130 --> 00:07:49,890 or mid timeframes. Okay. In other words, if you are a swing trader, you're going to be utilizing that daily timeframe to manage or the four hour chart to manage
45 00:07:49,890 --> 00:07:58,830 your trade, okay, but the daily is going to be utilized to facilitate the trade premise. In other words, that's going to give you your directional bias, okay,
46 00:07:58,830 --> 00:08:09,150 the market structure that is one the daily chart that's framing your swing trades, okay? Once you get into a trade, you'd be managing that trade on a four
47 00:08:09,150 --> 00:08:18,330 hour timeframe. And you would just use respective timeframes we just talked about in the previous slide. And then your one hour chart would be used for
48 00:08:18,330 --> 00:08:29,100 timing purposes. Okay. So the shortest time frame in that regard for swing trading would be the 60 minute chart. So, your entry signals would be derived
49 00:08:29,100 --> 00:08:41,400 from having studied the market structure on the daily and the four hour, then your one hour chart was facilitate the specific entry point. Okay, so in other
50 00:08:41,400 --> 00:08:52,020 words, you would do your entry concepts and techniques on the one hour chart for swing trades, the highest probability trades are made in the higher timeframe
51 00:08:52,020 --> 00:09:03,060 direction, okay, now, there are going to be instances where the higher timeframe premise may be bullish, but you're approaching a key resistance level. So that
52 00:09:03,060 --> 00:09:14,580 may be trumped. So that's where we're going to go back to the core essentials to technical analysis, that being support and resistance trumps everything. Okay.
53 00:09:15,120 --> 00:09:24,330 Without the understanding of key support resistance levels, you're not going to get to a directional bias, regardless of what trading model you're using
54 00:09:24,390 --> 00:09:33,510 position, day trading, whatever it is, if it's not framed on the premise of key support resistance levels, it's probably going to be a struggling point for you
55 00:09:33,510 --> 00:09:43,680 as well. Okay, so you have to go back to the core essentials to my concepts and just sound trading all together. Key support resistance levels are where it's
56 00:09:43,680 --> 00:09:53,010 all at, okay, without those, all of these lines and all these procedures that we're going to be covering here and we've covered in previous videos and such is
57 00:09:53,010 --> 00:10:00,390 going to do no good to you okay. So you have to understand what is a key support resistance level. So if you are looking at the highest time frame for your
58 00:10:00,420 --> 00:10:12,630 particular model that will hopefully draw your attention to whatever key to support resistance level. At that point in price action. Obviously, you can
59 00:10:12,630 --> 00:10:22,170 always go out to a daily and weekly just as a catch all as far as whatever timeframe you're trading, if you just look at it daily and weekly in terms of
60 00:10:22,170 --> 00:10:31,410 support resistance, those will be helpful to you. Now, the market profiles will also assist you in market structure analysis concepts that mean, are we in a
61 00:10:31,410 --> 00:10:41,220 trending market? Are we in a reversal pattern or formation or that type of profile in the marketplace? And are we in a consolidation, preparing for a
62 00:10:41,220 --> 00:10:54,210 breakout scenario? Okay, so, market profiling is essential to helping you and assisting you and measuring what the current market structure is. Okay, now, are
63 00:10:54,210 --> 00:10:55,140 we bullish or bearish?
64 00:11:01,500 --> 00:11:11,250 Alright, we're looking at market structure, we're referring to market structure.  What are we speaking about? What's the what is it that we're trying to get at?
65 00:11:11,640 --> 00:11:25,560 Okay? Well, if you look at a price, rally up, and then price hitting a major resistance level, we're going to assume for a moment that this is your higher
66 00:11:25,560 --> 00:11:33,270 timeframe. Okay, and I'm going to keep it generic because that way you can apply it to whatever your higher timeframe is, based on the model traded you are
67 00:11:33,300 --> 00:11:47,790 aiming to be as price rallies up into what we perceive as a higher level, key resistance level. Price never moves in a straight line. Okay, so there's going
68 00:11:47,790 --> 00:11:57,360 to be a consolidation of price move up and other consolidation of price move up and then as price makes it into this resistance level, then we will be
69 00:11:57,360 --> 00:12:09,960 anticipating a reversal. So when markets start to break down, taking out the short term, swing lows in here, this short term swing low when the highest
70 00:12:09,960 --> 00:12:18,870 timeframe for your particular trading model. Once that breaks, this would be the catalyst for you to say, Okay, this is probably going to be an optimal trade
71 00:12:18,870 --> 00:12:32,400 entry based on the higher time frame chart of your profile. Okay, so for an example, let's just say that this is a monthly chart, and you're looking for a
72 00:12:32,400 --> 00:12:40,680 position trade. Okay, the monthly hits a key resistance level like this, and it comes down takes out a short term low and a monthly, we know now, that market
73 00:12:40,680 --> 00:12:50,490 structure has broken, okay, so we have a market structure shift right here.  Okay. Now, we don't know what price is doing over here. This is all in the
74 00:12:50,490 --> 00:12:58,410 future. We're anticipating these types of events in terms of price action, but until we actually get them started trading, we can't deal with that yet. So it's
75 00:12:58,410 --> 00:13:09,780 all an anticipation in our anticipated anticipatory model. As far as our framework and thinking about price action, this is what we would expect to see
76 00:13:10,020 --> 00:13:21,990 once this structure has been broken. Okay. But as price starts to rally up, we don't anticipate seeing a break through this resistance level. Okay, if we
77 00:13:21,990 --> 00:13:30,480 arrived at this as a possible resistance level, we would expect a retracement for total trade entry, but then we would zoom in in this area right here. Okay,
78 00:13:30,510 --> 00:13:44,790 on a weekly timeframe to hone in on more key shorter term timeframe price levels. And then by zooming in, okay, we would possibly see a shorter term
79 00:13:44,820 --> 00:13:56,430 optimal trade entry or respective sell pattern to convince us even further that this is probably going to be a selling scenario. If we move down into a daily
80 00:13:56,430 --> 00:14:06,630 and see something even similar to that, okay, you would have all these nesting confluences of implied resistance levels, once a higher timeframe, market
81 00:14:06,630 --> 00:14:16,800 structure is broken down, then we would be able to position ourselves in sync with a top down approach with March structure. Okay. And then as price starts to
82 00:14:16,800 --> 00:14:28,020 trade down, this is the gray area all these areas where there's missing gaps.  Okay, that's intentional. Okay. We don't know what's going to take place between
83 00:14:28,080 --> 00:14:36,000 the time where we see an entry point, and where we expect to see price get to in terms of our targets, and we'll talk more about that later on. But this is the
84 00:14:36,000 --> 00:14:43,800 gray area where you have to be comfortable with, okay, because you don't know what's going to happen from your entry point. And your expected exit point.
85 00:14:44,070 --> 00:14:50,130 Okay. You don't know if it's going to go down there. Okay. You don't know if it's going to reverse and take you out of the trade. Okay. But the overall
86 00:14:50,130 --> 00:15:04,710 framework, okay or price structure. Okay, this is how market structure is built.  Okay, this is a price rally and a decline Okay, we have consolidation. If we
87 00:15:04,710 --> 00:15:13,320 expect to see some kind of a rally in here, something's bullish that we would expect to support that as price starts to rally up, okay? We could be utilizing
88 00:15:13,350 --> 00:15:27,060 our mid level or shorter term level timeframes to to see. bullishness, okay, we want to see support being held resistance being broken. Okay. And every time
89 00:15:27,060 --> 00:15:35,640 price starts to pull back and retrace in here, the market structure concept that you would be utilizing it would be to simply look for optimal trade entries.
90 00:15:36,120 --> 00:15:44,910 Okay, for buys, you would be looking for reflections to buy, you'd be looking for type two trend following bullish scenario. So in other words, in all this
91 00:15:44,910 --> 00:15:56,040 area here, you'd be looking for price finding support and resistance being broken. Okay, it's that it's that simple. That's the whole framework behind
92 00:15:56,040 --> 00:16:01,650 market structure. And its price rise up into another shorter term or me term resistance level and here,
93 00:16:03,270 --> 00:16:13,920 price will hopefully find some support, okay, but if it does start to break down, be comfortable with price coming back and blowing out previous lows in
94 00:16:13,920 --> 00:16:23,760 here. Okay, there may be an important load it's taking place, and trailing stop loss orders would be trailed up below that particular point. Okay. So as price
95 00:16:23,760 --> 00:16:31,830 dips back down, all that's going to do is give you another opportunity to get long. Okay, now again, let's think for a moment, this is the higher timeframe
96 00:16:31,830 --> 00:16:40,560 premise, okay, this is the highest timeframe chart when we start seeing this consolidation in here and we see the higher level resistance level because these
97 00:16:40,560 --> 00:16:49,500 are all noon in advance. This is why we have support resistance studies done.  This is all part of our top down analysis seeing where price may be reaching
98 00:16:49,500 --> 00:16:58,710 for. So if we start seeing price rally up in here and and consolidate again, in this is another higher level key resistance level. If price continues to
99 00:16:58,710 --> 00:17:09,690 maintain support, and breaks above all of these short term highs in here. The market structure implies that we could possibly see a leg from this low or
100 00:17:09,690 --> 00:17:25,800 whatever low would form back here to this high duplicated on a retracement here from this low to this high. The same thing can be said with market declines and
101 00:17:25,800 --> 00:17:38,370 reversals going along. Every time we see consolidation, consolidations, you want to study these for shorter term, more dynamic support resistance levels. These
102 00:17:38,370 --> 00:17:49,890 areas are more easily tradable because they have discernible price levels, they're very clear. We don't know how it's going to take price, from these
103 00:17:49,890 --> 00:17:59,190 consolidations to the next consolidation, we don't know that we anticipate that gray area that's missing these little pieces of market structure is missing. I
104 00:17:59,190 --> 00:18:11,550 left that out because I want you to think like this. Okay, it's, if it's a little confusing Now, I understand. But if you apply the same general, I don't
105 00:18:11,550 --> 00:18:24,330 want to say profile. But this diagram, okay, in other words, in terms of how I have priced lows, illustrated here, if you look at how price declines actually
106 00:18:24,330 --> 00:18:35,580 materialize, you'll start to see these lows form like this. And inside of those consolidations, and in every swing loaded forms, there's going to be a
107 00:18:35,580 --> 00:18:47,040 discernible optimal trade entries or reflection patterns, or generally fractal patterns. Okay, so you would apply these concepts, okay, with all the other
108 00:18:47,040 --> 00:18:59,910 concepts we've previously discussed. But looking at obviously, a higher level key support level down here as a catalyst. Okay. So as price moves from a
109 00:18:59,910 --> 00:19:10,080 consolidation down into a new consolidation, much in the same capacity, we just saw with the bullish move, reaching up into a higher level resistance level, we
110 00:19:10,080 --> 00:19:18,510 could be seeing a consolidation in here with this higher level of support level down here. This would be where price may be reaching for. So if it's
111 00:19:18,510 --> 00:19:28,080 consolidating here, we could look for a move from whatever high forms here to this low, okay, duplicated from this high or whatever high forms in this area
112 00:19:28,380 --> 00:19:39,900 down to this low. Okay, so, while this diagram is fragmented, okay, think of in terms of the market maker profiles that I just recently shared with you guys
113 00:19:39,900 --> 00:19:49,200 this year. You see that same premise here as well. I don't need to draw the lines in here. You can actually probably remember by the way the profile was
114 00:19:49,230 --> 00:20:00,120 given to you. You can actually see it in here. Okay. So as prices engineer to go lower down into a support level, ultimately to trade higher. This is The
115 00:20:00,120 --> 00:20:13,560 building blocks that we work with, okay? Now, because we have to live in the gray area and not expect a simple black and white Prime Minister trading, when
116 00:20:13,560 --> 00:20:21,480 we see consolidation here and price move down to a new area of consolidation and price moves down to a new area consolidation. And then we have short term breaks
117 00:20:21,600 --> 00:20:28,740 on market structure. Okay. And then once we have a shift in market structure right here, as price trades down, then that support level. Again, this is all
118 00:20:28,740 --> 00:20:37,290 assuming this is the highest level of your three timeframes that you're trading with, for your particular trading model. When you see this shift in market
119 00:20:37,290 --> 00:20:45,120 structure here, we would anticipate seeing a bullish move higher. But here's where we enter a new level of gray.
120 00:20:46,140 --> 00:20:55,800 When we move into this new consolidation in here, this may not always translate into even higher prices going up like we have here implied, it could be just
121 00:20:55,800 --> 00:21:05,220 reaching up to go back to this range from this old high to this low, remember inside the range concepts. Okay? So you have to have that in mind. So that's why
122 00:21:05,220 --> 00:21:15,570 if you're going to be getting long down here, they expect to see some type of profit taking here. Right. And you'd be able to see that utilizing your mid
123 00:21:15,570 --> 00:21:26,370 level chart. Okay, for your swing projections. Okay, and we'll talk about that more as we go on. But generally, as you see price come down in here, every time
124 00:21:26,370 --> 00:21:35,340 price retraces and gives you a new optimal trade entries. That's what you're looking for, you want to see price holding support, breaking resistance, okay,
125 00:21:35,370 --> 00:21:46,110 on this side of the support level being found. But as we're trading down into that support level, we're anticipating market structure to break lows, and then
126 00:21:46,110 --> 00:21:56,790 find resistance, break lows, find resistance, break lows, find resistance, okay?  So every new consolidation, if we're expecting price reaching down to a higher
127 00:21:56,790 --> 00:22:05,070 level support level, okay, on our highest level chart, that's why we do our analysis on the highest level, because you want to see where price is probably
128 00:22:05,070 --> 00:22:14,850 reaching for. And by seeing where the highest level chart in our particular trading model is reaching for. Again, we don't know for certain that they're
129 00:22:14,850 --> 00:22:23,370 always going to get there. But if you look in these higher level charts, it's going to give you the highest probability in terms of success. If price doesn't
130 00:22:23,370 --> 00:22:34,290 get to these particular points, and we start seeing early market, shifts in market structure, this could be a catalyst for you know, another type of trade,
131 00:22:34,560 --> 00:22:42,720 okay, we could possibly get a long in here and maybe reach up into the range from the high to this low here, that may be a means of profitability, it would
132 00:22:42,720 --> 00:22:56,460 be a good reward to risk scenario here, okay, 321 could still exist within that framework, that framework of price action, okay. But again, even if that
133 00:22:56,460 --> 00:23:10,740 happens, we could still take some short term trades in here. But that may be a very, very short term bias, only taking out to a higher level bias to get lower
134 00:23:11,850 --> 00:23:21,360 support levels here taken out, okay, in other words, it used the, you're gonna have to blend some concepts here, the inside the range concepts, simply looking
135 00:23:21,360 --> 00:23:32,880 at lower lows and lower highs. Okay, if we do get a short term bounce in here between the high that's formed here and the low here. This could be creating an
136 00:23:32,880 --> 00:23:37,290 about trade entry to get that fulfillment of this lower level support level down here.
137 00:23:43,080 --> 00:23:55,290 Now, again, we've seen this diagram before, assuming that we have a high up in here reaching into resistance. As price breaks this short term low here the
138 00:23:55,290 --> 00:24:05,970 market structure is broken. So as price starts to retrace, every time it retraces we're looking for new selling opportunities. But if we see a previous
139 00:24:05,970 --> 00:24:19,440 swing, as we see here, see this price swing here? Okay, if this levels taken out here, if we get a retracement or another additional sell signal, this is where
140 00:24:19,440 --> 00:24:31,020 we use swing projections. Just on price. We're not using Fibonacci you can, but just looking at simple price action alone, this low to high once it's broken,
141 00:24:31,350 --> 00:24:42,360 you can start taking this same measureable swing from this point here down to that same level and projected lower. Okay, and you get somewhere in this area
142 00:24:42,360 --> 00:24:54,810 here. Now I purposely allowed the diagram to be a little bit farther because I teach to exit on a trade before the actual objective is met. Okay, so every time
143 00:24:55,080 --> 00:25:04,590 we see a broken swing, okay, this is a swing that's broken here. No words this low here or whatever load would have formed in here. I'm assuming that you can
144 00:25:04,980 --> 00:25:17,640 see this as this as a swing. When it's broken right here, we went below it here, if we retrace back into it, okay, I'm also perfectly drew this a little bit past
145 00:25:17,640 --> 00:25:31,560 what would be expected as resistance. I've purposely allowed this to move beyond this low here. To illustrate how it support resistance can be gray as well, it's
146 00:25:31,560 --> 00:25:39,780 not black and white, you're going to have to allow some flexibility with price.  So when it starts to pull back deeper, okay, this still could set up the optimal
147 00:25:39,780 --> 00:25:51,180 trade entry. Okay. And while this isn't the exact level price was able to stave off a rally, it still was working within the previous range here, and this pie
148 00:25:51,180 --> 00:26:00,750 here as well. So we're still within a bearish market structure. So don't be lulled into thinking this is going to be a long to go higher. Assuming again,
149 00:26:00,750 --> 00:26:11,010 this is a higher level of resistance level. And again, every little short term retracement here could be a catalyst for an additional entry using our smallest
150 00:26:11,010 --> 00:26:21,210 of the three timeframes. Again, this is all modeling off of the highest timeframe. Okay, and then assuming once we get this broken down, this swing low
151 00:26:21,210 --> 00:26:30,960 here broken, we could utilize the mid level chart for additional entries. And or managing of a position that's already been assumed based on the highest of the
152 00:26:30,960 --> 00:26:43,170 three timeframes. Now as price also breaks down these swings are just swing up once it's broken, okay, this is an engineered swing, okay? You see this in price
153 00:26:43,170 --> 00:26:54,180 action all the time. Okay, it's a measured move, very simple, taking this low to this high, whatever that range is subtracted from that same point here. And
154 00:26:54,180 --> 00:27:06,360 projected lower. Okay, that's the measured swing, here is a measured leg move, you have the high down to a low here, price starts to retrace. And here, we
155 00:27:06,360 --> 00:27:17,640 could see this as an intermediate term price swing, okay, or price leg. So we have a measurable swing here that we can use for projections. And we also have a
156 00:27:17,640 --> 00:27:28,590 measurable lake. Okay, so we have the first leg and price down here, and we retrace back, utilizing the framework that's based on this swing up. Okay, so
157 00:27:28,590 --> 00:27:38,760 we're blending two concepts here, a swing that's broken. Okay. And within a bearish market structure, then we also have a retracement back into a previous
158 00:27:38,790 --> 00:27:49,110 support broken, it should act as resistance. Okay. And notice how this low here a chai that more or less imply that phrase could be reaching for even a shorter
159 00:27:49,110 --> 00:27:59,190 term support that's broken now as resistance. So what might look real clear and discernible on the charts, it may not be as clear cut as that. But we would
160 00:27:59,190 --> 00:28:09,270 expect this to be an enemy, a term retracement for a new leg down. And that's when you would expect to see the high too low here on this leg. replete,
161 00:28:09,450 --> 00:28:21,840 repeated and projected from this highway reforms here. Down here, and that would look similar to what we'd expect when you see me at term highs and lows. mid
162 00:28:21,840 --> 00:28:34,530 term high is obviously a high, there has lower highs on either side of it. Okay, and any near term low is a low that has two higher lows on either side of it. So
163 00:28:34,560 --> 00:28:34,920 it's
164 00:28:34,950 --> 00:28:46,380 very easy to see. It's simply looking at your candles and your bars on your respective timeframes. And we see these note them, okay. And by knowing them,
165 00:28:47,400 --> 00:28:55,650 you'll have whatever ways you want to have it. You know, I'm delineating and denoting that with these blue circles here, it could be anything on your charts,
166 00:28:55,650 --> 00:29:03,930 you could have stars, you could, you could just you type, intermediate term, high, whatever, you can put little arrows on it, whatever it is that you use to
167 00:29:03,930 --> 00:29:13,320 identify that, that's your way of doing it. But it's important you understand where they're at. And when they start to nest out like this, okay? You can
168 00:29:13,320 --> 00:29:23,550 classify enemy a term to now long term because if we have lower highs on either side of it, okay, this would classify this as a long term high. That would also
169 00:29:24,660 --> 00:29:37,230 allow you to expect to see much longer term price swings, okay? So by nesting out and marking off your swing highs and swing lows on your respective
170 00:29:37,230 --> 00:29:45,630 timeframes, you start to build a framework that's needed to be able to discern if you're in an area term, or short term price swing in within your market
171 00:29:45,630 --> 00:29:59,010 structure. Now that leg that we were talking about earlier, can be seen here by having that immediate term High Noon ID. So this is a aimia term, price leg. And
172 00:29:59,010 --> 00:30:06,690 then here's your immediate term. retracement. Okay. And then you would see, obviously, the next leg down would be replicated. So you can see the range
173 00:30:06,690 --> 00:30:17,190 between this low to high is exactly what you see here, causing you to expect or anticipate price movement back here. If you're in a trade still, once, you've
174 00:30:17,190 --> 00:30:24,150 retraced you can expect to hold on to that trade to get back down to these levels here, which would obviously hopefully be a higher level support level to
175 00:30:24,150 --> 00:30:29,220 also converge and have a confluence of reasons to expect to take some profits there.
176 00:30:35,580 --> 00:30:48,240 Now, by having all these things in the forefront of your mind, and having specific price legs and price swings, and how they nest together, it's important
177 00:30:48,240 --> 00:30:55,530 you understand that that framework of your market structure is derived from the highest level, the three timeframes you're trading with. That's where you're,
178 00:30:55,860 --> 00:31:08,430 you're the framework or the or the basis of your trade is built upon. Your mid level chart is used to zero down into a smaller timeframe expecting to find
179 00:31:09,360 --> 00:31:16,740 support resistance levels that may not be discernible in your highest timeframe, then your lowest timeframe is used for your entry. And we're going to talking
180 00:31:16,740 --> 00:31:26,250 about that specifically here. Assuming we've built the premise of market structure. And assuming that it's bullish, okay, everything we're talking about
181 00:31:26,250 --> 00:31:35,700 here would be obviously reverse for selling scenarios. But assuming we have a bullish market structure, okay, we're a swing trader, let's say for a moment
182 00:31:36,540 --> 00:31:47,100 that our highest timeframes suggest that we have a bullish market structure underway, we've traded off of a higher level, support level, and prices given us
183 00:31:47,100 --> 00:31:55,110 a broken market structure to the upside. Okay, so there's been a market structure shift, short term highs have been broken on our highest level
184 00:31:55,110 --> 00:32:06,540 timeframe chart, our mid level timeframe has allowed us to zero in to find a key support resistance level. Now, we have this higher level key support resistance
185 00:32:06,540 --> 00:32:15,540 level, that's also converging with our mid level support resistance level. Okay, and that same support resistance level may be a confluence of maybe a be a
186 00:32:15,570 --> 00:32:32,280 pattern that overlaps with that specific, that level. Okay, and we now have a bias, okay, this bias is bullish, it does not mean every single day, you're
187 00:32:32,280 --> 00:32:41,610 going to get us a trade that's going to materialize as a bullish move and see profitability. If it was, if it was just that simple guys, everybody would be
188 00:32:41,610 --> 00:32:51,990 multimillionaires. And we knew we'd be we know we'd all be Warren Buffett's. And super rich. So obviously, you know, it's it's not that easy. You have to have
189 00:32:51,990 --> 00:33:04,440 some discernment and allow for some failure, because it's going to happen. But assuming that we have that, that premise, okay, our bias is to buy, it doesn't
190 00:33:04,440 --> 00:33:14,790 mean that traders can't make money going short, this specific day or timeframe.  Okay, it just means that you are going to stick to being a bull at this
191 00:33:14,790 --> 00:33:25,890 particular day, or particular timeframe. Okay. So with that, and with that in mind, we always go back to our key premise of trading within kill zones. Okay.
192 00:33:26,070 --> 00:33:36,000 So you want to be doing your entries in your kill zone times, London, open, New York, open, London, close or Asia. Okay, but assuming we have already arrived at
193 00:33:36,000 --> 00:33:45,180 our time of day when we're going to be trading, okay, we already understand that the kill zone when it's going to begin, we already have our key support
194 00:33:45,180 --> 00:33:53,070 resistance level already identified. And we know where price should get to before we do anything. And that's going to be basically this little area right
195 00:33:53,070 --> 00:34:01,410 here. So when we're going to be seeing price, hopefully, at some point, move down to that level here. This is our action point. This is where we take action,
196 00:34:01,440 --> 00:34:03,960 we do the entry here.
197 00:34:04,110 --> 00:34:12,600 Now it could be on a limit basis, or it could be a market order, but we're utilizing time price theory. Okay. So this is what it looks like in in your
198 00:34:12,600 --> 00:34:25,290 mind. There's nothing happening yet. you anticipate these events unfolding within a specific time of day with a specific bias in mind. Okay? You want to
199 00:34:25,290 --> 00:34:33,570 see these things line up? And I think what happens is you guys send me emails you talked about on the internet posting on baby pips forums. Yeah, I don't know
200 00:34:33,570 --> 00:34:43,890 what the bias is for today. here's the here's the secret. Every day, the bias is both directions. Every day the bias is both directions. Think about that.
201 00:34:44,730 --> 00:34:53,850 There's traders making money going long and short that day. But you had to decide on what it is that you're trading based on your timeframe and your
202 00:34:53,850 --> 00:35:03,480 profile. Okay, as a trader, are you a short term trader, swing trader, are you a position trader and you're looking for The bias that you're holding to line up
203 00:35:03,480 --> 00:35:14,310 with price action, okay, you can't force price action to do what you want it to do, you can only get yourself in sync with what price may be doing and allowing
204 00:35:14,310 --> 00:35:23,970 you a ride. Okay, so with that assumption, we're looking at price here with the bullish premise that we will be expecting to see higher prices if we get down to
205 00:35:23,970 --> 00:35:33,570 this support level. Okay, so we've established that the higher timeframe of the three timeframes we use for market structure study is now bullish. Okay. We
206 00:35:33,570 --> 00:35:42,000 assumed that we have a very respectable support level down here. Okay. So if price trades back down to that level, within a kill zone, we're going to be
207 00:35:42,000 --> 00:35:50,220 taking action here to buy, okay, and all we simply do at that point is you wait, you wait until the kill zone starts. And when price gets to a specific point,
208 00:35:50,490 --> 00:35:57,690 you use whatever entry technique or concept you're going to be utilizing for your trade entry, which could be optimal trade entry. It could be reflection, it
209 00:35:57,690 --> 00:36:07,380 could be a Grail, it could be a stinger, it could be any, any one of the trading patterns that you're utilizing, but it's happening at a key support resistance
210 00:36:07,380 --> 00:36:15,930 level, with the higher time frame of the three different time frames you use for market structure, giving you your buyers. So when you have that this is your
211 00:36:15,960 --> 00:36:24,690 action plan, this is what you do. You don't do anything else. Okay? This could be a sell pattern here, okay, for someone that's very short term trader, okay,
212 00:36:24,690 --> 00:36:36,480 and trades down, they they've made money from this point here to here, that's not your trade. Okay? So don't try to force more out of the concept and it's
213 00:36:36,480 --> 00:36:46,710 intended, okay, you're just simply looking for a bias for your style of trading, okay? It doesn't mean that you're going to be right all the time. Okay. So take
214 00:36:46,710 --> 00:36:54,750 that out of the equation, all you're doing is looking to get yourself in sync with whatever price action is doing, based on your premise or your style of
215 00:36:54,750 --> 00:36:55,200 trading.
216 00:37:00,600 --> 00:37:13,050 Alright, obviously, this is a very simple approach to dealing with directional bias. But it's meant to help you avoid deal for complication, that tends to
217 00:37:13,050 --> 00:37:21,300 happen with traders, okay. And it's usually the new traders that try to add all these things to it and squeeze all the tools into giving them a directional bias
218 00:37:21,300 --> 00:37:29,820 with the expectation falsely, I'll be it, that they're gonna always know what direction the mark is gonna move every single day. And I'm going to tell you
219 00:37:29,820 --> 00:37:40,980 guys, I've been doing this almost 20 years. And I don't get it right every single day. Okay, you know what the secret is to my trading? I simply wait until
220 00:37:40,980 --> 00:37:50,220 everything lines up, that I like to see where the majority of all my tools, not all of them, the majority of the things that I'd like to see, based on my
221 00:37:50,580 --> 00:38:01,230 understanding what markets suggesting to me, or what profile are we in? Are we overall ripe for reversal? Are we in a trending condition? Are we in a
222 00:38:01,230 --> 00:38:10,980 consolidation area where, you know, I don't want to be taking any kind of trading, you know, with the expectation that we're going to have a trending type
223 00:38:10,980 --> 00:38:20,760 of event unfold, because we're going to be working within a large consolidation.  I use that as my building blocks. And then by using the market profiling to give
224 00:38:20,760 --> 00:38:28,140 me the initial clue as to where we may be trading, then I've started looking at actual individual market structure concepts on the three timeframes that I use
225 00:38:28,320 --> 00:38:38,880 for whatever type of trading I'm doing at the time. Because I am dynamic, I move from one timeframe, or profile trading to another one week, I may be simply a
226 00:38:38,880 --> 00:38:50,910 day trader. In other weeks, I'll be a short term trader. And I wish there's a way for me to teach that premise from moving from one dynamic to another. I
227 00:38:50,910 --> 00:39:02,010 can't. So it may be disappointing to you. But this is a limitation on me as a mentor, I just I don't know how to communicate that. But I can give you concepts
228 00:39:02,040 --> 00:39:11,640 and approaches to do specific styles of trading. And you just have to wait for the opportunities where price action gives you that sweet spot in terms of being
229 00:39:11,640 --> 00:39:20,910 able to apply it. Okay. So by selecting a directional bias, and this does not guarantee profitability, it's very important you understand that, nor does it
230 00:39:20,910 --> 00:39:30,960 guarantee accuracy in either your trade direction and or your trade results. One traders bias may be bullish, okay. They're looking for buys and that may exist
231 00:39:30,960 --> 00:39:41,910 inside the realm of another traders sell bias. They both can be correct and make money and even see both their respective profit objectives achieved. They both
232 00:39:41,910 --> 00:39:52,170 can be wrong and make money despite their respective profit objectives not being achieved. Again, it's not being about curb being, quote unquote, correct. It's
233 00:39:52,170 --> 00:40:00,900 about being profitable. However, they both could simply lose money and neither trade idea come to fruition. There is no black and white It's very important to
234 00:40:00,900 --> 00:40:12,510 understand that as a trader, you must enter the gray and be comfortable with the less than perfect visibility trades with the foresight that you're expecting
235 00:40:12,510 --> 00:40:23,370 don't exist. Nobody has a crystal ball. I don't have it. I'm still trading on the probabilities, not the perfect scenario. There's no perfect scenario, okay?
236 00:40:24,570 --> 00:40:35,100 You, as a trader will see trades materialize, that will provide you plenty of profit taking potential. live there. Don't expect 100% it's not going to happen.
237 00:40:35,190 --> 00:40:46,740 Okay, I guarantee you, the only thing 100% is going to happen is you're going to go nuts, expecting an impossibility. Find your timeframe as a trader, determine
238 00:40:46,740 --> 00:40:55,140 the market structure given for that timeframe. Trade within that respective market structure and perform your targeting on the highest and mid level
239 00:40:55,140 --> 00:41:05,430 timeframes. And I promise you, you'll have more than enough trades laid at your feet. But it's not about trading every day. And it's not about capturing 1000
240 00:41:05,430 --> 00:41:16,080 pips a month, okay. It's about consistently harvesting profits out of the marketplace, keeping risk low and your action level low. Don't try to trade a
241 00:41:16,080 --> 00:41:25,560 whole lot. Keep your trading controlled. That way you're going to control your emotions. your expectations will be kept realistic and you're going to live
242 00:41:25,560 --> 00:41:27,270 comfortably in the grain